Wesfarmers (ASX:WES) said sales growth for its Bunnings Group unit has moderated since the second half of fiscal 2026, with lower sales across seasonal categories and the commercial segment in recent weeks weighing on overall performance, according to a Thursday filing with the Australian bourse.
Higher inflation and borrowing costs are impacting demand in parts of the Australian economy and creating pressure on household budgets ahead of the key Black Friday and Christmas trading periods, the company said.
Sales growth for Kmart Group and Officeworks has been broadly in line with the second half of fiscal 2026, per the filing.
Wesfarmers said the construction of Kmart Group's omnichannel facility in Moorebank, New South Wales is expected to reach "practical completion" in November, with commissioning due to start in the first quarter of fiscal 2028. Kmart Group's earnings for fiscal 2027 are expected to include operating expenses of AU$30 million to AU$40 million related to dual occupancy costs, technology implementation, and other project expenses.
Meanwhile, fiscal first-half earnings for the company's chemicals, energy, and fertilizers division will benefit from the lag effect of ammonia pass through pricing, recent capacity expansions, and improved pricing of spodumene sales, it said.
